Oregon's largest health insurer seeks 22 percent rate increase

Oregon's largest health insurer, Regence BlueCross BlueShield, wants to raise premiums by more than 22 percent for 59,000 customers with individual coverage.

In response to the eye-popping rate request, state insurance regulators took the unusual step of scheduling a public hearing, set for June 2.

"We think public hearings for select rate filings would improve the transparency of our rate review process," said Teresa Miller, administrator, Oregon Insurance Division. Regence covers more individual insurance customers than any other carrier in Oregon, and Miller said those consumers have seen a series of large increases in recent years, as well as a redesign of their health plans.

The proposed 22.1 percent increase is an average; specific people could see their rates go up more or less depending on their circumstances. The proposed rate increase would take effect Aug. 1. It applies to policies sold to individuals, not employer group coverage.

Regence says the rate request is necessary to cover the rising costs of medical services and prescription drugs. In its rate filing, the company said medical costs increased by 12.6 percent, and that new benefits mandated by state and federal health reforms will add 5.5 percent to the costs of medical and prescription drug coverage. With the requested rate increase, Regence expects to make a 1.1 percent profit on its individual market plans.

The hearing will be from 4:30 to 7 p.m. in the Portland State Office Building, 800 NE Oregon St., Portland. The division will accept public comments on the rate request until June 15. Regulators have the authority to approve or deny the request or approve a lesser rate.